Natural justice breach in assessment: proceedings survive, and a fresh assessment may be completed without an express remand direction.

Cancellation of an assessment order for breach of natural justice vacates the impugned order but does not terminate the assessment proceedings. The defect only sets aside the existing assessment, leaving the proceedings open to continue from the stage at which the breach occurred. The assessing authority may therefore recommence the process and complete a fresh assessment for the relevant year even without an express remand direction from the appellate authority. The contention that remand is mandatory in every such case is rejected.

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Issues: Whether, when an assessment order is cancelled for violation of the principles of natural justice, the appellate authority must necessarily remand the matter for fresh assessment or whether the assessing authority can restart the proceedings and complete the assessment afresh without a specific remand direction.

Analysis: Cancellation of an assessment order for breach of natural justice only vacates the impugned assessment and does not terminate the assessment proceedings. Fresh proceedings remain open from the stage at which the defect occurred, and the assessing authority may continue them and pass a fresh assessment order. A specific direction of remand is not required for that legal consequence to follow.

Conclusion: The assessing authority is entitled to recommence the assessment proceedings and make a fresh assessment for the relevant year even without a remand direction; the contention that the appellate authority was bound to remand the matter is rejected.

Ratio Decidendi: Where an assessment is annulled for breach of natural justice, the assessment is set aside but the proceedings themselves survive, enabling fresh adjudication without an express remand.

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